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Nuwellis, Inc. (NASDAQ:NUWE), currently trading at $0.4 and showing a market capitalization of $1.76 million, has filed an 8-K with the Securities and Exchange Commission, detailing a recent securities exchange agreement. According to InvestingPro analysis, the stock appears undervalued at current levels. On June 9, 2025, the company entered into an agreement with its CEO, John L. Erb, to issue 100 shares of its newly designated Series F-1 Convertible Preferred Stock in exchange for 100 shares of the company’s existing Series F Convertible Preferred Stock. This transaction results in Mr. Erb owning 100% of the Series F-1 Stock.
The Series F-1 Convertible Preferred Stock shares similar characteristics to the existing Series F Convertible Preferred Stock, with a notable restriction. The company will not permit conversion of the Series F-1 Stock if it results in the holder owning more than 19.99% of the outstanding common stock.
The filing also mentions that the Certificate of Designation for the Series F-1 Stock was filed with the Delaware Secretary of State on June 6, 2025. The exchange agreement and the Certificate of Designation documents are available as Exhibits 10.1 and 3.1 in the company’s SEC filing.
The information in this article is based on a press release statement from Nuwellis, Inc.
In other recent news, Nuwellis, Inc. reported its financial results for the first quarter of 2025, revealing a 3% increase in revenue year-over-year, reaching $1.9 million. Despite this growth, the company faced a net loss of $3 million, or $0.69 per share. The company also announced a public offering priced at $0.30 per share, including accompanying warrants, to raise funds for working capital and potential acquisitions. Ladenburg Thalmann & Co. Inc. is managing the offering, which is expected to close soon, subject to standard conditions. Additionally, Nuwellis has no outstanding debt and holds cash reserves of $2.6 million, with a focus on disciplined expense management. The company has significantly reduced its operating expenses by 31%, although its gross margin decreased to 56% from 64.1% the previous year. Analysts from firms like Roth have shown interest in Nuwellis’ strategic direction, particularly its outpatient clinic expansion and clinical trial progress. The company continues to enroll patients in the REVERSE HF clinical trial and plans to start the Vivian clinical trial by late 2025 or early 2026.
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